Numerous researchers have highlighted a relative lack of academic attention directly addressing the influence of political economy on achieving sustainability in post-disaster reconstruction (Klein, 2008; Hystad and Keller, 2008; Olsen, 2000; Faulkner, 2001; Glaesser, 2003; Ritchie, 2004). This chapter therefore extends existing academic debates and studies in a number of areas, drawing upon the context of Thailand in the post-Asian tsunami era. In existing academic debates concerning the political economy of post-disaster reconstruction there is a trend towards disaster capitalism (Klein, 2005; Harvey, 2007; Saltman, 2007a). However, this did not occur on Phi Phi. Despite claims of a ‘clean slate' being offered by the tsunami in developmental terms (Pleumarom, 2004; UNDP, 2005; Dodds, 2011; Ko, 2005; Nwankwo and Richardson, 1994; Rice, 2005; Altman, 2005; Brix, 2007; Ghobarah et al., 2006; Dodds et al., 2010), this chapter provides explanation of why this did not and would never exist on Phi Phi, a finding that may be applied to other destinations in a post-disaster context.